The John Teeling-founded Connemara Mining Company has been awarded 10 licences to mine for gold in Donegal after a survey identified significant gold deposits in large areas of the border county.

The licences, which cost €12,000 for a two year-period, cover about 400 sq km of the Stranorlar region of Donegal. They allow the company to mine for silver and other base metals as well as gold, though the focus of the exploration will be on the precious yellow metal.

"This is early-stage prospecting but the potential is good," said the mining company's founder, John Teeling.

Recently released results from a study known as 'Tellus', after the Russian goddess of the earth, showed evidence of gold deposits across large parts of the border counties. The three-year study, financed by an EU fund for cross-border projects, makes the border region one of the most geologically studied areas on earth.

Donegal showed the most promising concentrations, but deposits of the precious metal were also detected at Kingscourt on the Monaghan-Cavan border, at Carrickmacross in Co Monaghan, at Killashandra in Co Cavan, Easky in Sligo, and several parts of the Inishowen Peninsula.

"We've had a tremendous amount of interest from mining companies as a result," said the Geological Survey of Ireland.

Connemara, the company founded in 2006 by a group of Irish zinc experts, has also identified potential gold targets in the Wicklow/Wexford region, which it is considering developing as part of a joint venture with Hendricks of Canada.

A multimillion ounce gold deposit has also been discovered in Tyrone by Dalradian Resources, a Toronto-based company.